Crypto Prices Rally: Is It Time To Start Taking Profit?

Over the past 24 hours, the crypto prices retained a bullish outlook, despite the broad macroeconomic and geopolitical uncertainties. Despite all odds, the market outlook shows that Bitcoin and altcoins have returned more gains to investors.

At this level, many investors ask if it is ideal to start closing their positions for fear of unforeseen pullbacks. While this question is highly subjective from one trader to another, some signs support the thesis for breakout and pullbacks, respectively.

The Geopolitical Tension and Trade War Trends

When the Russian-Ukrainian war started in 2021, it aggravated the impact of the COVID-19 pandemic on risk assets. With Western countries diverting resources to the war, inflation quickly became a major worry for global economies.

Many countries, especially the US, are in a much better place. Based on the March Consumer Price Index (CPI) reading of 2.4%, the confidence that the worst is passed is fueling BTC and risk asset gains. However, the current India-Pakistan war may tilt the overall balance in crypto markets.

Ceasefires have been negotiated and breached, complicating any attempt at peace talks. If both sides do not find a balance in the near term, it may have far-reaching negative implications in the ongoing trade talks.

Meanwhile, the US and China are holding tariff negotiations in Geneva. No sound resolution was reached on the first day, a sign many believe is not a good omen. These factors that may impact the global economy have placed risk-on assets on the hedge.

If these events do not play out positively as expected, it may be time for investors to start taking profits on shared gains.

Bitcoin and Risk Assets Find Positive Triggers

Despite the offset by the ongoing trade wars, Bitcoin has retained its growth trend. The coin has formed support at the $103,000 price mark, expecting a breakout in the coming week.

One of the most essential catalysts is the nation-state adoption of the top coin. New Hampshire has signed the Bitcoin Bill HB 302 into law in the United States. This move will allow the state to invest 5% of its funds into BTC and any cryptocurrencies with a market capitalization of $500 billion.

Other states, like Arizona, also made similar moves, with Missouri likely to pioneer the implementation of a No-Capital Gains tax on Bitcoin, crypto, and stocks. Lawmakers have already passed this bill and await assent from Governor Mike Kehoe.

Beyond this, corporate adoption of Bitcoin is growing. Spot Bitcoin ETF recorded three days of consecutive inflows, led by BlackRock iShares Bitcoin Trust. This implies that more than 5600 BTC were acquired by institutions in three days, exceeding the emissions from mining.

Away from the ETF market, firms like Strategy Inc. have also continued to exert buying pressure on the top coin. All these factors are positive for the coin and have helped retain its bullish momentum.

To Buy or to Sell As Crypto Prices Look Up?

With the positive and negative factors impacting Bitcoin and, by extension, the crypto market outlined, investors can further make informed decisions.

Many analysts are convinced the upside for the market is still ahead. Infact, CryptoQuant Founder Ki Young Ju acknowledged this, highlighting his wrong forecast from earlier in the first quarter.

With latent growth on the BTC and altcoin charts, it is recommended to maintain strong oversight on key trend changes. When this article was written, the BTC price was changing hands for $104,732 atop a 1.77% rally.

Other crypto prices including Ethereum, XRP, and Cardano were also up 10.1%, 5.18%, and 9.81% as altcoins extended their gains.

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